- Dead malls spring back to life
- The start of a huge rally?
- Plus: The best names in cheap retail
The retail apocalypse is a lie.
Don’t get me wrong — the stock losses racked up by the big mall anchors are very real. We’ve spent most of 2017 digging into troubling numbers posted by the prominent brick and mortar retailers. They aren’t pretty. Everyone knows that the first half of the year was a disaster for the mall anchors, with no relief is in sight for some of these troubled companies.
But there’s more to the “death of retail” story than these struggling stores. Watching iconic brands close locations across the country has warped our brains. We see pictures of vacant malls on the news and assume the American shopper has taken his business online for everything from big screen TVs to socks and underwear.
Will we ever leave our homes for the local shopping center again?
If you dig into the numbers, you’ll find that aside from the high-profile closings, brick and mortar retail is expanding this year. According to IHL Group, U.S. retailers will open 1,326 more locations than they will close in 2017.
Despite popular belief, every single retailer in the country isn’t about to declare bankruptcy. As we’ve said from the start, the best businesses will adapt and survive, whether we’re talking online start-ups or brick and mortar retailers.
The market’s finally starting to catch onto this idea…
For starters, the retail sector halted its nasty year-to-date plunge last month. It’s now quietly on the cusp of breaking out of the downtrend that has held the sector hostage all year.
The failed breakdown in late August appears to have sealed the downtrend’s fate. The bears have overplayed their hand and are now susceptible to a face-ripping rally if these poor little retail names can catch a little momentum…
In fact, we’ve already seen select retail stocks rise from the rubble.